The financial guarantees issued by the Company provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due. The obligations are generally not subject to acceleration, except in the event the Company has the right, at its discretion, to accelerate insured obligations upon default or otherwise. Payments to be made by the issuer on the bonds or notes may be backed by a pledge of revenues, reserve funds, letters of credit, investment contracts or collateral in the form of mortgages or other assets. The right to such funds or collateral would typically become National’s or MBIA Corp.’s upon the payment of a claim by either National or MBIA Corp.

The Company’s ultimate exposure to credit loss in the event of nonperformance by the issuer of the insured obligation is represented by insurance in force. Insurance in force is the estimated maximum potential exposure to insured obligations before considering the Company's various legal rights to the underlying collateral and other remedies available under its financial guarantee contract. The calculation of insurance in force includes estimates, which the Company periodically updates, relating to the expected remaining term of insured obligations supported by homogeneous pools of assets, foreign exchange rates, a municipality's taxing power, municipal revenues derived from a public project or dedicated tax or fee and other assumptions based on the characteristics of each insured obligation. The Company insures predominantly fixed-rate instruments. For variable rate contracts and contracts which reference the consumer price indices, the Company's methodology includes utilizing the respective interest rates in effect at the inception of the insurance contracts.

Actual insurance in force may differ from estimated insurance in force due to refundings, terminations and commutations, prepayments, changes in floating interest rates and consumer price indices, changes in foreign exchange rates on non-U.S. denominated insured obligations and other factors.

As of December 31, 2023, the Company's insurance in force had an expected maturity through 2058. The distribution of MBIA Corp.’s and National’s combined insurance in force by geographic location, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, is presented in the following table:


		As of December 31,
$ in billions		2023					2022
				% of					% of
		Insurance		Insurance			Insurance		Insurance
Geographic Location		in Force		in Force			in Force		in Force
California		$	13.4		22.0	%	$	14.8		21.8	%
Illinois			6.6		10.8	%		7.5		11.0	%
New Jersey			3.8		6.2	%		4.1		6.1	%
Hawaii			3.6		6.0	%		3.8		5.6	%
Virginia			3.4		5.6	%		3.6		5.2	%
Texas			2.7		4.4	%		2.9		4.2	%
Oregon			1.7		2.8	%		2.0		3.0	%
Colorado			1.7		2.8	%		1.8		2.7	%
New York			1.5		2.5	%		2.0		2.9	%
Georgia			1.5		2.4	%		1.6		2.4	%
	Subtotal		39.9		65.5	%		44.1		64.9	%
Nationally Diversified			6.7		11.1	%		7.3		10.7	%
Other states			11.8		19.4	%		13.7		20.1	%
	Total United States		58.4		96.0	%		65.1		95.7	%
Internationally Diversified			0.2		0.3	%		0.2		0.4	%
Country specific			2.3		3.7	%		2.7		3.9	%
	Total non-United States		2.5		4.0	%		2.9		4.3	%
Total		$	60.9		100.0	%	$	68.0		100.0	%

The insurance in force and insured gross par outstanding by type of bond, excluding financial obligations guaranteed by MBIA Corp. on behalf of affiliated companies, are presented in the following table:


				As of December 31,
$ in billions				2023				2022
				Insurance		Gross Par		Insurance		Gross Par
Bond type				in Force		Amount		in Force		Amount
Global public finance - United States:
	General obligation (1)			$	16.8	$	8.0	$	19.1	$	9.1
	Military housing				13.2		6.6		13.8		6.8
	Tax-backed				11.0		4.9		12.2		5.6
	Transportation				6.5		2.1		6.9		2.2
	Municipal utilities				6.4		4.6		7.6		5.2
	General obligation - lease				1.0		0.7		1.3		1.0
	Higher education				1.0		0.7		1.1		0.8
	Health care				0.7		0.4		0.8		0.6
	Investor-owned utilities (2)				0.4		0.3		0.5		0.3
	Other (3)				0.1		0.0		0.1		0.1
		Total United States			57.1		28.3		63.4		31.7
Global public finance - non-United States:
	Sovereign-related and sub-sovereign (4)				1.3		1.0		1.5		1.2
	Transportation				0.4		0.4		0.5		0.4
	Other (5)				0.1		0.1		0.1		0.1
		Total non-United States			1.8		1.5		2.1		1.7
			Total global public finance		58.9		29.8		65.5		33.4

Global structured finance:
	Mortgage-backed residential				0.9		0.6		1.2		0.8
	Corporate asset-backed				0.5		0.4		0.5		0.4
	Mortgage-backed commercial				0.4		0.2		0.4		0.2
	Collateralized debt obligations				0.1		0.1		0.2		0.2
	Consumer asset-backed				0.1		0.1		0.2		0.1
		Total global structured finance			2.0		1.4		2.5		1.7
			Total	$	60.9	$	31.2	$	68.0	$	35.1

(1) - Includes general obligation unlimited and limited (property) tax bonds, general fund obligation bonds and pension obligation bonds of states, cities, counties, schools and special districts.

(2) - Includes investor owned utilities, industrial development and pollution control revenue bonds.

(3) - Includes stadium related financings, municipal housing and certain non-profit enterprises.

(4) - Includes regions, departments or their equivalent in each jurisdiction as well as sovereign owned entities that are supported by a sovereign state, region or department.

(5) - Includes municipal owned entities backed by sponsoring local government, tax backed and utility transactions.

Investment agreement contracts and MTNs issued by the Company’s corporate segment are not included in the previous tables. If MBIA Inc. or these subsidiaries were to have insufficient assets to pay amounts due, MBIA Corp. would be obligated to make such payments under its insurance policies. As of December 31, 2023, the maximum amount of future payments that MBIA Corp. could be required to make under these guarantees is $1.0 billion. These guarantees, which mature through 2037, were entered into on an arm’s length basis. MBIA Corp. has both direct recourse provisions and subrogation rights in these transactions. If MBIA Corp. is required to make a payment under any of these affiliate guarantees, it would have the right to seek reimbursement from such affiliate and to liquidate any collateral to recover amounts paid under the guarantee.

Reinsurance enables the Company to cede exposure for purposes of syndicating risk. The Company generally retains the right to reassume the business ceded to reinsurers under certain circumstances, including a reinsurer’s rating downgrade below specified thresholds. At this time, the Company does not intend to utilize reinsurance to decrease the insured exposure in its portfolio.

MBIA requires certain unauthorized reinsurers to maintain bank letters of credit or establish trust accounts to cover liabilities ceded to such reinsurers under reinsurance contracts. The Company remains liable on a primary basis for all reinsured risk. MBIA believes that its reinsurers remain capable of meeting their obligations, although, there can be no assurance of such in the future.

The aggregate amount of insurance in force ceded by MBIA to reinsurers was $1.7 billion and $2.0 billion as of December 31, 2023 and 2022, respectively.

As of December 31, 2023, the aggregate amount of insured par outstanding ceded by MBIA to reinsurers under reinsurance agreements was $782 million compared with $897 million as of December 31, 2022. As of December 31, 2023, $639 million of the ceded par outstanding was ceded from the Company’s U.S. public finance insurance segment and $143 million was ceded from the Company’s international and structured finance insurance segment. Under National’s reinsurance agreement with MBIA Corp., if a reinsurer of MBIA Corp. is unable to pay claims ceded by MBIA Corp. on U.S. public finance exposure, National will assume liability for such ceded claim payments. The following table presents information about the Company’s reinsurance agreements as of December 31, 2023 for its U.S. public finance and international and structured finance insurance operations.



In millions

Reinsurers	Standard & Poor's Rating (Status)	Moody's Rating (Status)	Ceded Par Outstanding		Letters of Credit/Trust Accounts		Reinsurance Recoverable/(Payable), Net(1)
Assured Guaranty Re Ltd.	AA	WR(2)	$	405	$	19	$	10
	(Stable Outlook)
Assured Guaranty Corp.	AA	A2		328		-		2
	(Stable Outlook)	(Stable Outlook)
Others	A or above	WR(2) or above		49		-		-
	(Stable Outlook)
Total			$	782	$	19	$	12

(1) - Total reinsurance recoverable/(payable) is primarily related to recoverables on paid and unpaid losses net of paid and unpaid salvage due to reinsurers.

(2) - Represents a withdrawal of ratings.